QF CEO Interview

[dajop]

He should let someone else rebuild Qantas.

With the competition from middle east carriers, high fuel prices, QF Sale Act, and relatively high labour costs in Australia (irrespective of unionised or not), who says a rebuilt Qantas is going to be more successful, or even successful full stop? I really think QF's problems stem from well before AJ, living off the spoils of a cosy duopoly in US routes and near monopoly in corporate domestic market for way too long. That and having no 777s. I'm no expert, but I don't think there's an easy fix - even with abundant capital and more focussed management.

Having said that, some of the things we've seen strategically from AJ/QF just seem on the face of it plain daft.

 

[simongr]

Sooo based on the input from jb747 who in theory can do nine flights in a thirty day period and average work time when flying is 11 hours this is in theory 1,188 hour per year. Now I thought I also read that his flying hours per year are 900 max. Either way on $500,000 per year (alleged Pilot salary) it is either $420/hour or $555/hour - obviously any other time spent in the sim or non-flying time is just for fun and not work

Flip to the QF CEO on 5,000,000 per year. Assuming 250 work days per year and 12 hour days that is $1,667 per hour. Being even more generous to AJ if he works six days per week 12 hours per day that is still $1,335/hour. Maybe this sort of maths explains the problems at QF

 

[Robert K]

<mod removed> do we need another thread on his salary

If people aren't happy that he gets paid so much, they should go study to become a CEO of qantas

 

[simongr]

Given he raised the point that he earned less per hour than a pilot I thought it was worth doing the maths...

Personally I don't find $5million offensive for a successful CEO.

 

[medhead]

Personally I don't find $5million offensive for a successful CEO.

my emphasis added. I think the jury is still out on that question.


Sent from the Throne

 

[simongr]

Yes - my wording was very specifically chosen...

 

[smit0847]

We're not arguing that he doesn't get paid the right amount, we are arguing that he made a stupidly incorrect statement in a magazine article about his salary.

 

[harvyk]

Given he raised the point that he earned less per hour than a pilot I thought it was worth doing the maths...

Personally I don't find $5million offensive for a successful CEO.

my emphasis added. I think the jury is still out on that question.


Sent from the Throne

Actually I think the jury of public opinion has finished deliberating, and I believe the consensus is he is not a successful CEO. To his credit he hasn't completely trashed the airline, it's just he hasn't really done anything for it either, where as their number 1 competitor VA hasn't been sitting still, and has been doing all they can to take business from QF, QF are still treating VA as an annoyance rather than a threat, they match what VA is doing, but they don't exceed it.

I guess the best description for AJ is "seat warmer". He has his little projects that he wants to work on, but nothing revolutionary has come out of it.

 

[medhead]

Actually I think the jury of public opinion has finished deliberating, and I believe the consensus is he is not a successful CEO. To his credit he hasn't completely trashed the airline, it's just he hasn't really done anything for it either, where as their number 1 competitor VA hasn't been sitting still, and has been doing all they can to take business from QF, QF are still treating VA as an annoyance rather than a threat, they match what VA is doing, but they don't exceed it.

I guess the best description for AJ is "seat warmer". He has his little projects that he wants to work on, but nothing revolutionary has come out of it.

True. But he is still in the seat, so there is still the chance that he can turn it around, no matter how slim.


Sent from the Throne

 

[yo yo ma]

Actually I think the jury of public opinion has finished deliberating, and I believe the consensus is he is not a successful CEO.

He is not actually in a public position so it doesn't really matter what public opinion is... He is accountable to the shareholders and the board.

 

[harvyk]

He is not actually in a public position so it doesn't really matter what public opinion is... He is accountable to the shareholders and the board.

Yes, but I bet the board and shareholders are none too pleased when a QF customer becomes an ex QF customer... Those QF customers come from the general public...

 

[awilcockson]

If people aren't happy that he gets paid so much, they should go study to become a CEO of qantas

I'm not complaining about his salary. I'm complaining about him dragging out the old, and incorrect, argument that he is paid less (per hour) than the pilots.

This line first saw light during the "troubles". It was rubbish then, and it is rubbish now.

 

[jetlagger]

Personally I don't find $5million offensive for a successful CEO.[/QUOTE]

Entirely debatable! Is he truly worthy of this??

What innovation? What improvements has this well deserved 'Captain" achieved ? & eventually off to his 'golden life raft" 'to the sunset" as his predessors have before him..

For blaming every other 'external force" for the sake of validating his or the board's decisions to 'realign" QANTAS?

Sorry.. Don't buy it!

Typical corporate attitude of modern day. Australia seems to be at the forefront of this & with AJ at the helm..

Sad plight for a well respected & historic National & International icon.. With a questionable talented future

 

[amaroo]

Maybe the job is just beyond him! Few more statements like that & I'm sure the board will start to think it is.

 

[harvyk]

Maybe the job is just beyond him! Few more statements like that & I'm sure the board will start to think it is.

I don't think the job is beyond him per say, it's just I don't think his mindset is in the right space for QF and their customers, and I think he knows it, thus the badly thought out comments.

He can be a good CEO, just look at what he did with JQ... Whilst there are arguments about how they got routes handed to them on a platter (just look at NZ Dom) the long and short of it is he got JQ running.

The problem is QF is not JQ, QF has a different type of pax, one that is non to impressed by penny pinching at the top, and who actually understand the true meaning of "enhancement" and believes that cutting service, and yet still charging the same amount does not constitute an "enhancement" no matter how nicely the graphics department puts together the email.

 

[amaroo]

I don't think the job is beyond him per say, it's just I don't think his mindset is in the right space for QF and their customers, and I think he knows it, thus the badly thought out comments.

He can be a good CEO, just look at what he did with JQ... Whilst there are arguments about how they got routes handed to them on a platter (just look at NZ Dom) the long and short of it is he got JQ running.

The problem is QF is not JQ, QF has a different type of pax, one that is non to impressed by penny pinching at the top, and who actually understand the true meaning of "enhancement" and believes that cutting service, and yet still charging the same amount does not constitute an "enhancement" no matter how nicely the graphics department puts together the email.

I agree in regards to J* and what he accomplished as a start up. However, he was never really in the big chair back then & had the luxury of standing one back from the QF CEO.

Maybe his real talent is a 2IC type role. Someone that floats ideas but not the one that makes the final call. FWIW, I did like his call with the unions.

 

[simongr]

Personally I don't find $5million offensive for a successful CEO.

Entirely debatable! Is he truly worthy of this??

What innovation? What improvements has this well deserved 'Captain" achieved ? & eventually off to his 'golden life raft" 'to the sunset" as his predessors have before him..

For blaming every other 'external force" for the sake of validating his or the board's decisions to 'realign" QANTAS?

Sorry.. Don't buy it!

Typical corporate attitude of modern day. Australia seems to be at the forefront of this & with AJ at the helm..

Sad plight for a well respected & historic National & International icon.. With a questionable talented future

I think you missed the subtlety of my post - $5m for a successful CEO is appropriate - I am not sure we can measure AJ's success at this point.

 

[alieninperth]

I think that there is difference to be made between salary and package.

According to the Qantas annual report (pg43) AJs salary was $2.187m for 2011, an additional $2.821m is allowed for share based payments, which are presumably performance based and are treated as a bonus, as well as longer term and post employmenet benefits.

If we are comparing base salary against base salary, and I dont have the time to do it fully, it may fill in the picture more.

 

[jetlagger]

I think you missed the subtlety of my post - $5m for a successful CEO is appropriate - I am not sure we can measure AJ's success at this point.

Fair call simongr.. Guess it is all open to interpretation..

 

[yohy?!]

A multi-million $ salary might be appropriate had any value been returned to shareholders, on this matter there is no question -

No dividends and a share price in the toilet = failure